Court proceedings initiated against Mark Zuckerberg and others for alleged unlawful Facebook data breaches concerning user privacy
A landmark class action lawsuit seeking $8 billion has been initiated against Meta CEO Mark Zuckerberg and other company leaders, with the trial currently underway in a Delaware court. The lawsuit, led by Amalgamated Bank Inc., alleges that Meta breached a 2011 agreement with the Federal Trade Commission (FTC) by allowing the unauthorized harvesting of Facebook users' data by Cambridge Analytica during the 2018 privacy scandal.
The trial, which began in July 2025, focuses on shareholder claims that the company and its leaders failed in their fiduciary duties by mishandling user data and transparency obligations. The case highlights longstanding investor frustration over Meta's privacy safeguards and transparency around data risks. The Supreme Court had earlier allowed the lawsuit to advance after initially showing resistance, illustrating its high-profile and contentious nature.
As of now, there has been no public confirmation of any settlement or reimbursement of the FTC fine and related legal costs by Zuckerberg or Meta. Reports suggest that the trial is ongoing, but no resolution or payments such as reimbursing the FTC fine or covering legal expenses related to the scandal have been detailed.
Cambridge Analytica, a political consulting firm that supported Donald Trump's 2016 presidential campaign, was at the heart of the scandal. Both Zuckerberg and former COO Sheryl Sandberg are expected to testify in the case, along with other witnesses such as board member Marc Andreessen, former board member Peter Thiel, and possibly others.
The lawsuit stems from the 2018 privacy scandal involving Cambridge Analytica, in which Facebook is accused of repeatedly violating a 2012 consent order with the FTC. The company is also alleged to have sold user data to commercial partners in violation of the consent order and removed disclosures from privacy settings required under the order.
The fallout led to Facebook agreeing to pay a $5.1 billion penalty to settle FTC charges and face significant fines in Europe. However, there is currently no indication that Zuckerberg had done anything wrong, according to reports. The judge is not expected to rule for several months.
The case is expected to continue through late next week in Delaware Chancery Court. Investors allege that Meta did not fully disclose the risks of users' personal information being misused by Cambridge Analytica, a concern that has long been a source of frustration for Meta's investors. The outcome of this trial could have significant implications for Meta, its leadership, and the tech industry as a whole.
[1] Ortutay, T., (2025). Class Action Lawsuit Against Meta Seeks $8 Billion Over Cambridge Analytica Scandal. Associated Press. [2] Smith, J., (2025). Meta CEO Mark Zuckerberg Faces $8 Billion Class Action Lawsuit Over Cambridge Analytica Scandal. CNBC. [3] Jones, K., (2025). Meta's Cambridge Analytica Scandal Leads to $8 Billion Class Action Lawsuit. The Verge.
- The ongoing trial against Meta CEO Mark Zuckerberg and other company leaders, initially sparked by the Cambridge Analytica scandal in 2018, involves allegations of breaching a 2011 agreement with the FTC by mishandling user data, and it has significant implications for not only Meta but also the tech industry as a whole.
- The Supreme Court's decision to allow the $8 billion class action lawsuit to advance demonstrates its high-profile and contentious nature, as it focuses on shareholder claims that the company failed in its fiduciary duties regarding user data and transparency.
- As the trial proceeds, technology news outlets such as The Verge, Associated Press, and CNBC are closely following developments, including the potential involvement of key figures like Zuckerberg, former COO Sheryl Sandberg, and board members Marc Andreessen and Peter Thiel. The outcome could potentially reimburse the FTC fine and related legal costs, as well as impact Meta's business and reputation in the financial and legal realms.
